XRP Healthcare has confirmed unauthorized transactions that drained 4,011 XRPH Wallet accounts, a security incident that began on September 3, 2026. The breach resulted in estimated losses reaching $452,000.
On-chain analytics researcher Handy Andy detailed that the stolen assets include 267,664 XRP and approximately 23.2 million XRPH tokens, along with several other ecosystem coins such as XRPHAI. The hacker subsequently swapped all stolen assets into 445,198 DAI on the Ethereum network. Tracking data shows the funds remain untouched at a single destination Ethereum address with no further movement at the time of writing.
Staking Feature That Transmitted Keys
Independent investigations have pointed to an alleged technical issue within the crypto wallet application. The staking feature inside XRPH Wallet is suspected of causing users’ seed phrases to be transmitted to a remote server. This vulnerability is strongly suspected of giving the attacker direct access to transfer funds from thousands of accounts simultaneously.
As an initial response, the XRP Healthcare team moved to suspend all use of the XRPH Wallet application until the investigation concludes. However, the company has not yet released the app’s source code, server logs, or published an independent forensic report that could confirm the suspected cause of the leak.
Criticism from Ecosystem Veterans
Senior developers within the XRP Ledger ecosystem swiftly voiced sharp criticism in response to the wallet breach. A developer known as BiasGoose revealed that they had previously rejected a grant application from the project after identifying various red flags early on. Former Ripple core developer Matt Hamilton also weighed in, highlighting the project’s poor reputation within the community.
XRP Healthcare management stated that they have contacted crypto exchanges to freeze or recover the assets held at the attacker’s Ethereum address. However, there has been no confirmation on whether the asset freeze efforts were successfully executed by exchanges or law enforcement authorities.
To date, XRP Healthcare has not announced any compensation program or recovery timeline. Thousands of users who lost assets are left waiting with no certainty regarding the reimbursement of their funds.
Reported by crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
